American Realty Investors, Inc. reports Earnings for Quarter Ended June 30, 2026

Key Terms

lease-up technical

Lease-up is the initial period after a building is finished or renovated when the owner rents out units or space and moves occupancy from empty to the intended level; think of it like stocking and selling items on the shelves of a new store. Investors watch the speed and rent levels achieved during lease-up because they determine how quickly rental income and cash flow start, influence financing and return estimates, and signal demand or risk for the property.

unconsolidated joint ventures financial

Unconsolidated joint ventures are business partnerships where a company shares ownership and control but keeps the venture’s full financials separate from its own books; the company typically reports only its share of profit or loss instead of combining all assets, liabilities and sales. This matters to investors because it can hide the venture’s full risks, debts and revenues from the parent’s financial statements, so understanding these arrangements helps assess true exposure and future cash flow potential — like seeing only your slice of a pie rather than the whole pie’s size.

noncontrolling interest financial

The portion of a business owned by investors other than the controlling owner when one company has control of another; it represents outside shareholders’ share of the subsidiary’s assets and profits. For investors, it matters because those outside claims reduce the amount of profit and net assets attributable to the parent owner — similar to saying part of a pizza belongs to someone else — and thus affects earnings, book value and valuation.

weighted average common shares financial

The weighted average common shares is the average number of common stock shares outstanding during a reporting period, weighted to reflect when new shares were issued, repurchased, or converted. Investors use it to calculate per-share measures like earnings per share, because it smooths timing differences—like averaging how many seats were filled at a theater across a run rather than counting just one night's audience—so per-share figures reflect the real share base over the whole period.

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DALLAS--(BUSINESS WIRE)-- American Realty Investors, Inc. (NYSE:ARL) is reporting its results of operations for the three months ended June 30, 2026. For the three months ended June 30, 2026, we reported net loss attributable to common shares of $1.0 million or $0.06 per share, compared to a net income attributable to common shares of $2.8 million or $0.18 per share for the same period in 2025.

Financial Highlights

• Total occupancy was 81% at June 30, 2026, which includes 93% at our multifamily properties and 58% at our commercial properties.
• Occupancy for our Alera, Bandera Ridge and Merano (collectively, our “Development Properties”) at June 30, 2026 was 86%, 85% and 77%, respectively.
• During the three months ended June 30, 2026, we sold 21 lots from our holdings in Windmill Farms for $1.0 million, resulting in a gain on sale of $0.8 million.

Financial Results

Revenues increased $0.7 million from $12.2 million for the three months ended June 30, 2025 to $12.9 million for the three months ended June 30, 2026. The increase in revenue is primarily due to an increase of $0.5 million from our multifamily properties and $0.2 million from our commercial properties. The increase in revenue from our multifamily properties is due to the lease-up of our Development Properties and the increase from our commercial properties is primarily due to an increase in occupancy at Stanford Center.

Net operating loss increased $1.5 million from $1.0 million for the three months ended June 30, 2025 to $2.5 million for the three months ended June 30, 2026. Our increase in net operating loss was primarily due to a $1.6 million increase in operating expenses from the lease-up properties for the three months ended June 30, 2026.

Net (loss) income attributable to common shares changed approximately $3.8 million from net income of $2.8 million for the three months ended June 30, 2025 to a net loss of $1.0 million for the three months ended June 30, 2026. The decrease in net income is primarily attributed to a $1.5 million increase in net operating loss and a $1.6 million decrease in interest income, net offset in part by a $1.3 million decrease in tax provision.

About American Realty Investors, Inc.

American Realty Investors, Inc., a Dallas-based real estate investment company, holds a diverse portfolio of equity real estate located across the U.S., including office buildings, apartments, shopping centers, and developed and undeveloped land. The Company invests in real estate through direct ownership, leases and partnerships and invests in mortgage loans on real estate. The Company also holds mortgage receivables. The Company’s primary asset and source of its operating results is its investment in Transcontinental Realty Investors, Inc. (NYSE:TCI). For more information, visit the Company’s website at www.americanrealtyinvest.com.

AMERICAN REALTY INVESTORS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
(Unaudited)
	Three Months Ended June 30,						Six Months Ended June 30,
	2026			2025			2026			2025
Revenues:
Rental revenues	$	12,236		$	11,510		$	23,892		$	22,937
Other income		630			650			1,315			1,231
Total revenue		12,866			12,160			25,207			24,168
Expenses:
Property operating expenses		8,176			6,535			15,509			12,512
Depreciation and amortization		3,697			3,062			7,327			5,945
General and administrative		1,498			1,534			2,984			3,026
Advisory fee to related party		2,044			2,042			4,127			4,511
Total operating expenses		15,415			13,173			29,947			25,994
Net operating loss		(2,549)			(1,013)			(4,740)			(1,826)
Interest income		2,810			3,353			6,634			7,363
Interest expense		(2,803)			(1,777)			(5,771)			(3,597)
Equity in income from unconsolidated joint ventures		412			19			412			(140)
Gain on real estate transactions		814			947			1,199			4,838
Income tax provision		71			1,335			505			189
Net (loss) income		(1,245)			2,864			(1,761)			6,827
Net loss (income) attributable to noncontrolling interest		235			(37)			200			(1,035)
Net (loss) income attributable to the common shares	$	(1,010)		$	2,827		$	(1,561)		$	5,792
Earnings per share
Basic and diluted	$	(0.06)		$	0.18		$	(0.10)		$	0.36
Weighted average common shares used in computing earnings per share
Basic and diluted		16,152,043			16,152,043			16,152,043			16,152,043

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260806890727/en/

American Realty Investors, Inc.
Investor Relations
Erik Johnson (469) 522-4200
investor.relations@americanrealtyinvest.com

Source: American Realty Investors, Inc.